Nothing we don't already know but more mainstream coverage can't hurt prospects...
http://www.theaustralian.com.au/bus...s/news-story/6bd7386da4264fac0a7051ef0c17cabe
Axiom Mining (AVQ) 26.5c
The Solomon Islands nickel developer has staged a remarkable recovery after it fell to the curse of dispossession afflicting so many local resource plays operating in developing countries. Axiom was dealt an unexpected blow when the island nation’s Court of Appeal failed to uphold its tenure over the Kolosori tenement, one half of the Isabel wet laterite nickel project.
But the court also didn’t endorse the challenger, Japan’s Sumitomo, and Axiom has been invited to reapply.
Axiom chief Ryan Mount, who lives in Honiara and is married to a local gal, is convinced Axiom has enough local goodwill to be awarded the turf. Mount expects to hear from the authorities “shortly” but it’s wise to assume that, as with the prolonged court battle, the process will take time.
Luckily, Axiom has a plan B and decided to go ahead with the San Jorge portion of Isabel, which is roughly the same size and scope of Kolosori.
The simple mine plan involves scraping up the shallow ore and shipping it to regional Asian buyers, probably the Chinese who are only about 15 per cent self-sufficient in the stainless steelmaking ingredient.
The backdrop is a recovering nickel price and tightening supply of the tropical wet laterite material, the input of choice for most regional smelters.
The Philippines, the biggest supplier, has joined Indonesia in curtailing output while New Caledonia has a long-term ban on supplying to the Chinese. “Things are hotting up,’’ Mount says.
The acid test is that Axiom this week finalised a $5m institutional placement, increased from the original $3m. Spec buy maintained.
The Australian accepts no responsibility for stock recommendations. Readers should contact a licensed financial adviser. The author does not hold shares in the stocks mentioned.
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